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Chen Hongbo 1 Overview Dimethyl carbonate (hereinafter referred to as DMC) is an important intermediate in organic synthesis. The molecular structure of dimethyl carbonate contains functional groups such as carbonyl, methyl, and methoxy groups, thereby endowing it with various reactive properties. Furthermore, due to its safety in use, convenience, low environmental impact, and ease of transportation, dimethyl carbonate is considered a \"green\" chemical product. It can replace highly toxic substances such as phosgene and dimethyl sulfate, and is used in various chemical industries including pharmaceuticals, pesticides, and solvents. The development of DMC products in our country began in the early 1980s. Initially, the production was carried out using the phosgene method developed domestically, with facilities being built within existing phosgene production companies. The capacity of each facility ranged from 300 to 500 tons per year, giving a total domestic production capacity of around 1,000 to 1,500 tons per year. Entering the 1990s, a large number of domestic research institutions, such as Zhejiang University, East China University of Science and Technology, Huazhong University of Science and Technology, Southwest Institute of Chemical Engineering, and Shanghai Institute of Chemical Industry, successively began research on the development of DMC production processes that did not rely on the phosgene method. The transesterification process has been subjected to pilot-scale or industrial trials at enterprises such as Chaoyang Chemical Plant in Tangshan City, Hebei Province, Baoding Chemical Co., Ltd. in Zibo, Shandong Province, and Dongfang New Materials Factory in Taixing, Jiangsu Province. Through years of experimentation, the technical level of this process has gradually improved. The liquid-phase oxidation carbonylation production process developed by Huazhong University of Science and Technology was also tested on a pilot and pilot-scale basis at Hubei Xinglihua Chemical Co., Ltd. During this period, the production of dimethyl carbonate in our country increased significantly; by the end of the 1990s, there were over a dozen domestic manufacturers of dimethyl carbonate, with a production capacity of 6,000–7,000 tons. Since the 21st century, the production process of dimethyl carbonate via transesterification in China has been continuously improved, and several ten-thousand-ton-scale dimethyl carbonate production facilities were built in the country after 2002. The liquid-phase carbonyl oxidation process has been put into industrial use, with a production facility of 4,000 tons per year built in Hubei. China’s dimethyl carbonate industry has entered a period of rapid development; by the end of 2003, the country’s production capacity for dimethyl carbonate had reached 73,000 tons per year. However, due to the limited size of the actual market, the utilization rate of these production facilities was very low, resulting in a relative surplus in production. Nevertheless, some domestic enterprises and regions still consider dimethyl carbonate a key focus for development. According to the existing plans, if all of them are implemented, domestic dimethyl carbonate production will exceed 150,000 tons per year by 2008; however, market demand during that period is estimated to be only 56,600 tons. To avoid unnecessary waste of resources resulting from excessive investment and to promote the rational allocation of resources, this paper aims to put forward several suggestions for the development of the domestic dimethyl carbonate industry, based on an analysis of the dimethyl carbonate market. 2 Domestic and International Market Analysis 2.1 International Market 2.1.1 Production Status Currently, aside from China, the production capacity of dimethyl carbonate in other ** regions is approximately 170,000 tons per year, with production and consumption amounts around 90,000 tons. The distribution of production capacity in Western Europe, Japan, and the United States in 2002 is shown in the table below: The production capacity of dimethyl carbonate in the world’s major countries and regions in 2002: http://pub2.hi2000.com/upload1/0706291552322162.jpg Currently, there are about a dozen major foreign manufacturers of DMC. These include GE (General Electric), Enichem Synthesis SPA (Italian company Eni), Mitsubishi Chemical Corporation (Japanese company Mitsubishi Chemical), as well as Ube in Japan. The main foreign producers of DMC are listed in the table below: Overview of the major foreign producers of dimethyl carbonate in 2002, in tons per year: http://pub2.hi2000.com/upload1/0706291554007957.jpg 2.1.2 Foreign DMC consumption: In 2002, the production and consumption of DMC abroad were approximately 97,000 tons; the main application area was in the synthesis of polycarbonate (PC), with a consumption volume of around 50,000 tons, accounting for about 51.5% of the total consumption ； The consumption in the pharmaceutical sector is approximately 26,000 tons, accounting for about 26.85% ； The consumption of pesticides was 8,000 tons, accounting for about 8.2% ； The consumption in other areas is about 13,000 tons, accounting for approximately 13.4%. Apart from China, there were no reports of new DMC plants being built abroad in 2002. The consumption structure of dimethyl carbonate worldwide in 2002 and the projections for 2007 are summarized by industry as follows: 2.1.2.1 Polycarbonate (PC) Currently, there are 7 countries/regions in the world that produce polycarbonate, including the United States, Western Europe, Japan, South Korea, Brazil, Eastern Europe, and China, with nearly 50 factories operating in these areas. General Electric (GE) of the United States is the largest manufacturer; in 2002, GE’s PC production capacity accounted for about 35% of the world’s total production capacity. Bayer ranks second in the world, accounting for about 26% of total production capacity ； Dow Chemical is the world’s third-largest PC producer, with a total production capacity that accounts for 11% of the global total. In 2002, the global polycarbonate production capacity was approximately 2.4 million tons per year. In recent years, the production and consumption of PCs worldwide have maintained a rapid growth trend, making it one of the key areas for investment by many large foreign PC manufacturers. The Asia-Pacific region will become a key area for new rounds of investment, and the production landscape for PCs will change as a result. For example, the German company Bayer plans to build a large-scale PC plant with an annual production capacity of 200,000 tons in Shanghai, China. Currently, the main production process for PCs is the interfacial polymerization method using phosgene as a raw material. In the PC industry, EniChem Synthesis was the first company to successfully develop a process for producing DMC through the oxidative carbonylation of methanol and carbon monoxide, and to bring this process into industrial use. In 1995, Bayer acquired EniChem Synthesis; it is reported that Bayer may use EniChem Synthesis’s DMC technology to produce PC. In the early 1990s, GE Plastics Japan adopted the phosgene-free technology from EniChem Synthesis at its PC plant in Chiba with an annual production capacity of 25,000 tons; today, the capacity of that facility has been increased to 45,000 tons per year. GE’s PC production plant in Cartagena, Spain, uses its own developed phosgene-free technology, with a PC production capacity of 136,000 tons per year. A process for producing diphenyl carbonate (DPC) from DMC and subsequently PC has been developed by Asahi Chemical Company in Japan. Ube Industries (Japan) once planned to build an experimental plant using a non-phosgene process, but it has not yet been built or put into operation. Currently, the capacity of facilities abroad that use the DMC route to produce PC is approximately 180,000 tons per year, with an annual consumption of DMC of around 50,000 tons. In the future, as the global PC industry develops and manufacturing processes are improved, the consumption of DMC in the PC industry is expected to increase as well; it is anticipated that by 2007, the consumption volume will reach around 100,000 tons per year. 2.1.2.2 Pesticide industry In the pesticide sector, DMC is primarily used to produce methyl isocyanate, which is then used to manufacture certain carbamate pesticides. The agrochemicals that can be produced include aldicarb, carbofuran, chlorpyrifos, methomyl, etc. In 2001, global DMC consumption for pesticides was approximately 7,000 tons. In recent years, with the continuous introduction of new pesticide varieties, some of these products will replace carbamate insecticides to a certain extent in agricultural production. Since the production and consumption of carbamate pesticides are expected to remain at current levels in the coming years, the consumption of DMC in the pesticide sector will also stay around 7,000 tons per year. 2.1.2.3 Pharmaceuticals Dimethyl carbonate is primarily used in the pharmaceutical industry for the synthesis of anti-infective drugs, antipyretic and analgesic drugs, vitamins, and drugs for the central nervous system. DMC is primarily used in the synthesis of active pharmaceutical ingredients such as ciprofloxacin, norfloxacin (Norfloxacin), pipemidic acid, and ciprofloxacin lactate, functioning mainly as a methylating agent. Dimethyl carbonate offers advantages in production such as safety in use, convenience, low pollution, and easy transportation. Since the intermediate leakage accident at Union Carbide’s plant in Bhopal, India, in 1984, countries around the world have gradually restricted the production and use of toxic chemicals such as phosgene due to safety and environmental concerns. Therefore, as a substitute for phosgene, dimethyl sulfate, etc., dimethyl carbonate has a large market. “Following the 9/11 attacks, several cases of anthrax-mail incidents occurred in the United States, which led to ciprofloxacin – a drug effective in preventing anthrax – becoming a best-selling medication, and thus driving up demand for DMC significantly. Based on the global production of anti-infective drugs, the consumption of DMC is estimated to be around 26,000 tons per year. The forecast for 2007 is 40,000 tons per year. 2.1.2.4 Other fields: DMC can also replace dimethyl sulfate (DMS) as a methylating agent in other applications ； Reaction with higher carbon alcohols (C12-C15) to prepare alkyl carbonates ； Used as a solvent and as an additive in gasoline, etc. It is understood that the current consumption of DMC in the other fields listed above is approximately 13,000 tons per year. In other fields, DMC has promising market prospects for consumption; especially as environmental regulations become stricter, its use is set to increase in areas such as replacing DMS and as a solvent in coatings, owing to its environmentally friendly properties. It is expected to reach 30,000 tons by 2007. In summary, the consumption structure of DMC worldwide in 2002 and 2007 (projections) is shown in the table below: World DMC Consumption Structure and Projections (unit: 10,000 tons) http://pub2.hi2000.com/upload1/0706291556071325.jpg 2.2 Domestic Market Analysis 2.2.1 Domestic Production As of the end of 2003, there were more than 20 DMC manufacturing enterprises in China, with a total production capacity of approximately 73,000 tons per year. Except for the 4,000-ton/year production facility of Hubei Xingfa Group, which uses the liquid-phase oxidative carbonylation process, the remaining facilities all employ the ester exchange process developed domestically. In 2003, the total domestic production of DMC was approximately 23,000 tons, with a plant utilization rate of only 31.5%. The main manufacturers of dimethyl carbonate in China are listed in the table below: Overview of China’s main dimethyl carbonate manufacturers in 2003 (unit: tons) http://pub2.hi2000.com/upload1/0706291557211783.jpg Through more than two decades of development, the production processes for dimethyl carbonate in China have seen significant improvements. All production facilities using the phosgene method have ceased operations ； The liquid-phase oxidative carbonylation process has been initially applied, resulting in an industrial production facility with a capacity of 4,000 tons per year ； The transesterification process has seen large-scale development and has become the mainstream method for dimethyl carbonate production in China. Overall, China’s dimethyl carbonate industry has seen improvements in terms of the scale of production facilities, production standards, and product quality. Its competitiveness in the international market is gradually increasing, as evidenced by the substantial growth in exports of dimethyl carbonate over the past two years; in 2003, the net export volume of this product reached nearly 7,000 tons. 2.2.2 Domestic Consumption and Projections In 2003, the actual consumption of dimethyl carbonate in the domestic market was approximately 6,300 tons, with it being primarily used in fields such as pharmaceuticals, solid phosgene, pesticides, and fine chemical intermediates. Since there are no non-photographic PC (polycarbonate) production facilities in the country to date, the use of dimethyl carbonate in PC remains unexplored at present. 2.2.2.1 Pharmaceuticals Dimethyl carbonate is primarily used in the pharmaceutical industry for the synthesis of anti-infective drugs, antipyretic and analgesic drugs, vitamins, and drugs for the central nervous system. Among anti-infective drugs, dimethyl carbonate is primarily used in the synthesis of starting materials for compounds such as ciprofloxacin, norfloxacin (norfloxacin), pipemidic acid, methoxyfluroxacin, ciprofloxacin lactate, lomefloxacin, fluroxacin, anthracylfluoroxacin, enoxacin, and flurazone; it functions mainly as a methylating agent. In 2003, the total consumption of dimethyl carbonate in China’s pharmaceutical industry was approximately 3,000 tons. Among them, ciprofloxacin is the product that requires a large amount of dimethyl carbonate, with consumption of around 1,800 tons. Furthermore, in the production of norfloxacin bulk drug, dimethyl carbonate has seen significant development in recent years as a substitute for dimethyl sulfate, with its consumption reaching around 1,200 tons. In the pharmaceutical industry, quinolone-based drugs offer good efficacy at low prices, and they are also safe and easy to use. Domestic consumption of these drugs is set to experience steady growth in the future, with new varieties continuing to emerge; as a result, the demand for dimethyl carbonate in the production of quinolone-based drugs is expected to increase significantly ； Furthermore, as the cost and price of dimethyl carbonate continue to decline and domestic environmental protection policies become stricter, its use in the pharmaceutical industry as a methylating agent to replace the highly toxic dimethyl sulfate will be increasingly widespread. This represents the market with the greatest growth potential for dimethyl carbonate in the pharmaceutical sector. It is estimated that by 2005 and 2008, the consumption of dimethyl carbonate in domestic pharmaceutical production will reach 4,500 tons and 8,000 tons respectively. 2.2.2.2 Solid phosgene Solid phosgene, also known as triphosgene, has a reactivity similar to that of phosgene and can be used as a substitute for it in phosgenation reactions; however, its safety profile is much better than that of phosgene. In recent years, with the rapid development of the dimethyl carbonate industry in China, and in order to further expand the consumer market for downstream products derived from dimethyl carbonate, the production and application of solid phosgene have attracted attention from many domestic dimethyl carbonate manufacturers and research institutions, resulting in an increasing output year by year. In 2003, China’s total production capacity for solid phosgene was approximately 10,000 tons per year, with a production volume of around 4,600 tons. The production was carried out entirely using the dimethyl carbonate route, requiring about 1,400 tons of dimethyl carbonate. In recent years, to improve the safety level of chemical production, **restrictions on phosgene production facilities have become stricter. In the long term, solid phosgene, as a substitute for phosgene gas, will have certain room for development. It is estimated that the domestic production of solid phosgene will reach 6,300 tons in 2005 and 10,000 tons in 2008, at which times 1,900 tons and 3,000 tons of dimethyl carbonate will be consumed respectively. 2.2.2.3 Pesticides: After the 1980s, carbamate pesticides developed rapidly in China, and pesticide varieties that utilize methyl isocyanate, such as carbofuran, chlorprothixene, carbaryl, and methomyl, were all produced. At present, for the production of pesticides for the aforementioned varieties in China, except for Jiangsu Taicang Baoli Ge Chemical Co., Ltd. which uses dimethyl carbonate to produce methyl isocyanate, all other manufacturers use the phosgene method to produce methyl isocyanate. Overall, the consumption of dimethyl carbonate in China’s pesticide industry is relatively low, with the total amount not exceeding 600 tons. In recent years, there have been significant improvements in the production and supply methods of phosgene. Due to cost factors, the use of dimethyl carbonate as a substitute for phosgene in the production of carbamate pesticides has seen limited growth; as a result, demand for dimethyl carbonate in the pesticide industry is expected to remain at current levels. 2.2.2.4 Polycarbonate (PC) Currently, two methods are generally used for PC production: the transesterification method and the phosgene-mediated interfacial polycondensation method. The transesterification method involves the transesterification and polycondensation of bisphenol A with an excess of diphenyl carbonate (DPC) in a molten state, gradually forming the polymer product–polycarbonate. The phosgene-mediated interfacial polycondensation method involves carrying out a phosgene-mediated interfacial polycondensation reaction on an aqueous solution of bisphenol A to synthesize polycarbonate. The synthesis of DPC generally follows a route involving the reaction of phosgene with phenol; alternatively, DPC can be synthesized by reacting dimethyl carbonate with phenol, which is known as the non-phosgenation route. At present, all PC manufacturers in China use phosgene as a raw material and the interfacial polymerization method to produce PC. Therefore, at present, there is no consumption of dimethyl carbonate in PC production in our country. Looking at the development trends of domestic polycarbonate projects in recent years, a large number of research institutions in China are actively working on the production technologies for diphenyl carbonate and polycarbonate using non-photographic methods. There are plans to develop polycarbonate through such non-photographic processes in China; if these plans are implemented, a breakthrough will be achieved by 2008, and this sector will become the largest consumer of dimethyl carbonate in the country. It is estimated that the consumption of dimethyl carbonate at that time will reach 20,000 tons. After 2010, building on the breakthroughs and industrialization of non-photographic PC processes in China, it is expected that the country’s non-photographic polycarbonate industry will experience rapid growth, thereby driving rapid expansion of the dimethyl carbonate market. 2.2.2.5 Other fields: Used as a safe and environmentally friendly electrolyte in the production of lithium-ion batteries, it is one of the most important applications for carbonate-based products in recent years, attracting widespread attention within the industry. In recent years, industries related to mobile electronics in our country, such as mobile phones, portable computers, camcorders, and cameras, have experienced rapid development; accordingly, the production and consumption of lithium batteries have also increased significantly. Currently, the number of mobile phones in the country has reached 200 million, while the number of portable computers has reached 1.3 million. According to industry estimates, in 2003 alone, the production of lithium batteries for mobile phones reached 800 million units. The annual consumption of the ternary solvent consisting of dimethyl carbonate, diethyl carbonate, and ethyl methyl carbonate was around 3,000 tons; assuming that 30% of this amount was dimethyl carbonate, the actual consumption of dimethyl carbonate was approximately 1,000 tons. Additionally, dimethyl carbonate can also be used in areas such as the production of isocyanates, solvents for coatings and inks, and as a substitute for dimethyl carbonate in the synthesis of a range of organic intermediates. At present, the consumption of dimethyl carbonate in these fields is still in its initial stage, with relatively low actual consumption levels; in 2003 it was only around 300 tons. However, from a long-term perspective, due to its low toxicity and safety, there will be significant growth in these fields in the future, as costs can be reduced substantially. It is estimated that the demand for dimethyl carbonate in lithium batteries and other applications will reach 2,000 tons in 2005 and 5,000 tons in 2008, respectively. The current consumption and forecast of dimethyl carbonate in our country are shown in the table below. Table of current consumption and forecast for dimethyl carbonate (unit: tons) http://pub2.hi2000.com/upload1/0706291558321548.jpg In recent years, the export of dimethyl carbonate products in China has seen rapid growth. In 2003, 5 domestic companies managed to export their products, with an export volume of 7,000 tons – a figure that exceeded the country’s actual consumption level. As a result, product exports became the main route for domestic dimethyl carbonate products. Due to the limitations imposed by the slow growth in the development of downstream products for dimethyl carbonate in the domestic market, as well as the pressure resulting from the rapid increase in production capacity of domestic facilities, seeking product exports has become a key focus for domestic dimethyl carbonate manufacturers in their market competition. Currently, the two companies, Hebei Xinchaoyang and Tangshan Chaoyang, hold a dominant position in the domestic dimethyl carbonate export market, and their products have gained wide recognition among foreign customers. As its product portfolio evolves in a more diversified direction, its market share overseas will continue to grow. Currently, other domestic dimethyl carbonate manufacturers are also gradually increasing their efforts in product exports; for example, Tongling Jintai. The products of this company are mainly exported to regions such as Southeast Asia and Japan. It is expected that the export of dimethyl carbonate products in our country will continue to grow at a steady pace in the coming years. 2.3 Analysis of Product Prices From 1997 to the first half of 2004, the price trends of dimethyl carbonate in China are shown in the table below: Prices of dimethyl carbonate in China from 1997–2004: http://pub2.hi2000.com/upload1/0706291559236411.jpg In the first half of 1997, failures occurred simultaneously in the DMC production facilities of Italy’s Eni company and Japan’s Ube company, resulting in a shortage of DMC on the international market. This led to a sharp increase in prices, with domestic prices reaching 15,000–18,000 yuan per ton. Thereafter, as DMC production and supply gradually returned to normal, prices began to decline in the second half of 1997, and by June 1998 they had stabilized at 10,000–13,000 yuan per ton. In the nearly five years since 1998, the production of DMC in our country has experienced rapid growth, with both the capacity of production facilities and output increasing steadily. The domestic DMC market has gradually reduced its reliance on foreign markets, which has played a significant role in stabilizing the prices of DMC in the domestic market. During the period from 1999 to the first half of 2002, the market price of DMC in our country remained at around 10,000 yuan per ton, with slight fluctuations due to supply and demand conditions in the market. After 2003, due to a significant increase in the production capacity of dimethyl carbonate plants in China, there was an excess of production capacity, market competition intensified, and prices dropped markedly, falling from an average of 9,500 yuan per ton in 2003 to 8,250 yuan per ton. Given the current development trends, the growth rate of domestic DMC production capacity remains higher than that of market demand; competition in the domestic market is set to intensify further. It is expected that the market price of dimethyl carbonate in China will remain relatively stable over the next few years, with a slight decline, and the price will fluctuate between 7,000 and 8,000 yuan per ton. 3 Characteristics and Risks of China’s Dimethyl Carbonate Industry 3.1 Industrial Features 3.1.1 Increasing Scale of Production Facilities Over the past twenty-odd years, the scale of dimethyl carbonate production facilities in China has improved; the production capacity of various enterprises has increased from a few hundred tons initially to tens of thousands of tons at present, with a trend toward further expansion, gradually bringing it closer to the average level seen abroad. The enlargement of device scale has promoted the intensification of production in the industry, and it has also laid the foundation for reducing the production costs of products. 3.1.2 Shift in the industry’s growth model from quantity-based to quality-based As the scale of production facilities in various enterprises reaches higher levels, simply expanding production capacity is no longer sufficient to meet the demands of increasingly fierce market competition, which has driven enterprises to shift gradually from a quantity-based to a quality-based growth model. Manufacturing enterprises pay more attention to this in order to ensure that their production facilities have a high level of technical sophistication. This is manifested in: (1) a significant improvement in process efficiency, more stable production, an enhanced level of automated control, as well as reduced consumption of raw materials and energy for producing the products ； (2) The quality and grade of the products have improved. Currently, the purity of dimethyl carbonate produced in China can reach over 99.9%, with a water content of less than 10 ppm, which fully meets the requirements for high-quality products in fields such as lithium battery electrolytes, thus creating conditions for the export of domestic products. 3.1.3 The product structure has been adjusted. In recent years, domestic research institutions and enterprises have collaborated to increase efforts in the development and industrialization of downstream products derived from dimethyl carbonate. Certain achievements have been made in areas such as methyl ethyl carbonate, diethyl carbonate, diphenyl carbonate, and solid phosgene; industrial production has been established in some enterprises. This has promoted the horizontal and vertical diversification of dimethyl carbonate-based products, facilitated the adjustment and upgrading of their product structure, and played a positive role in expanding the market scope and capacity for dimethyl carbonate while reducing market risks. 3.1.4 The traditional consumer sectors remain the main market for dimethyl carbonate. Based on the analysis of the dimethyl carbonate market presented above, consumption of this substance in China is currently concentrated in industrial fields such as pharmaceuticals, pesticides, and lithium battery electrolytes, accounting for over 85% of the total consumption. It is expected that between 2003 and 2008, the average annual growth rate of dimethyl carbonate consumption in the three sectors of pharmaceuticals, pesticides, and lithium battery electrolytes will exceed 20%, and it will remain the main driver of dimethyl carbonate consumption in the country. 3.1.5 China is becoming a major exporter of dimethyl carbonate. As the production scale of dimethyl carbonate in China increases and its product quality improves, coupled with growing pressure from the domestic market, China’s exports of this substance have been rising year by year, exceeding its actual domestic consumption. As a result, China has become an important exporter of dimethyl carbonate products. Between 2003 and 2008, this trend will continue to strengthen, enabling our country to become the largest producer of dimethyl carbonate for the world market. 3.2 Risks and Issues 3.2.1 Relative Overproduction At present, a situation of relative overproduction of dimethyl carbonate exists in China. According to the development plans of various regions and related enterprises, new dimethyl carbonate production facilities with capacities of over 10,000 tons are still planned to be built in places such as Heilongjiang, Liaoning, Inner Mongolia, Shanxi, Shandong, Hebei, Anhui, and Xinjiang. If these plans are implemented, the scale of dimethyl carbonate production facilities in China will continue to expand at a rapid pace. In the market, the consumption of dimethyl carbonate remains concentrated in some traditional sectors. In areas such as solvents, polycarbonates, and gasoline additives, which are generally considered to have promising prospects, the use of dimethyl carbonate is still in its initial stages, and this situation is likely to persist for a long time. The actual market capacity is limited, and it is not sufficient to meet the development needs of industries in China that aim to reach production levels of over 100,000 tons. 3.2.2 Similar processes, repeated development, and insufficient development and application of new technologies: At present, the vast majority of dimethyl carbonate production facilities already in operation in China use the transesterification process. These facilities have similar processes, with little differentiation, and their technical levels are comparable. Among the oxidation carbonylation processes commonly used abroad, only Hubei Xingfa Group has a production facility with an annual capacity of 4,000 tons. This technical structure poses a series of problems for China’s dimethyl carbonate industry: (1) The limitations of this technology lead to similar costs among various enterprises, making it difficult to achieve further cost reductions, and thus competition among them intensifies ； (2) It has increased the pressure on the supply of raw materials such as propylene oxide (ethylene oxide), leading to prominent conflicts over resources ； (3) Increasing market pressure on the by-product propylene glycol (or ethylene glycol) affects the normal development of the dimethyl carbonate industry. Nevertheless, some domestic research institutions are still initiating new projects to study the transesterification process for dimethyl carbonate, which will inevitably lead to new unnecessary construction and waste of resources. On the other hand, the development of new processes such as oxidative carbonylation, direct CO2 synthesis, and urea hydrolysis is still insufficient and needs further advancement. 3.2.3 The industry has entered an era of slim profits. Intense market competition has led to a continuous decline in the market price of dimethyl carbonate, and in the long run, this price is expected to remain at around 7,000–8,000 yuan per ton. It is based on the calculation of a 10,000 tons/year dimethyl carbonate production plant using the transesterification method. This article provides a rough estimate of the production cost of its products. The construction investment is estimated at 58 million yuan. The prices of products and raw materials are based on market rates, while the costs related to utility services are set at domestic average levels. The results of the calculation for the static investment and production costs are shown in the table below: Cost composition of dimethyl carbonate via transesterification method: http://pub2.hi2000.com/upload1/0706291600128703.jpg. As can be seen from the table, under the current technological conditions and raw material prices, the production cost of dimethyl carbonate in China is approximately 6,400 yuan per ton. The profit margin for this product is very small, and the industry has gradually entered an era of slim profits. In the future, competition among enterprises will rely more on improving technical standards, saving energy and reducing consumption, as well as enhancing product offerings. By raising the overall level of their facilities and systems, enterprises can improve their ability to compete in both domestic and international markets. 4 Industrial Development Recommendations 4.1 Prudent Investment: Given the current relative surplus in domestic dimethyl carbonate production capacity, the ongoing increase in investment in dimethyl carbonate production in certain regions of the country, and the further increasing pressure on the product market, it is recommended that companies adopt a more cautious approach when making decisions regarding investments in dimethyl carbonate products. Try to avoid repetitive construction that lacks distinct features and competitiveness. For those regions with abundant coal resources that plan to develop carbon-based chemical industries, the construction of dimethyl carbonate should be considered comprehensively, on the basis of ensuring advanced and reliable technology sources as well as a thorough analysis of the competitiveness of their respective products. 4.2 Increase market development in downstream application areas. Dimethyl carbonate is regarded as a \"green\" chemical product, featuring safety and environmental friendliness. However, due to its high product price, its application in replacing dimethyl sulfate as an esterifying agent for use in chemical reactions, as an organic solvent in paint production, and as a substitute for MTBE as a gasoline additive still requires further promotion and development. By intensifying market development for dimethyl carbonate in these application areas, it is possible to effectively expand domestic demand, alleviate the pressure on the domestic dimethyl carbonate market, and create a better market environment for the development of this industry. 4.3 Promote the research and development as well as industrialization of downstream products, and facilitate the adjustment of the product portfolio. Enterprises should drive changes in their product structure to achieve diversification in their offerings, strive to carry out internal product conversion, and increase the rate of self-sufficiency in terms of component utilization. In business, it is possible to actively cooperate with relevant domestic research institutions to develop a range of products such as dimethyl carbonate–diphenyl carbonate–polycarbonate, methyl ethyl carbonate, diethyl carbonate, solid phosgene, and isocyanates. The goal is to achieve large-scale industrial production, thereby reducing the market risks associated with these products while increasing their added value. 4.4 Increase the development of new technologies: To further improve the technological level of dimethyl carbonate production in our country, reduce the production costs of this product, and address the issue of its lack of competitiveness at its root, it is necessary to pay attention to the development and application of new technologies related to dimethyl carbonate. The key technologies under development include the oxycarbonyl synthesis method, the process for directly synthesizing DMC from CO2 and methanol, and the urea hydrolysis method.